Selling Accelerates

No doubt, readers of this blog are paying attention to what is going on in the world, and there isn’t much for me to add. Still, I can’t help but add a few comments.

1. Selling is accelerating on building volume after Tuesday’s successful defense of the 1275 SPX level.

2. 50 day EMA is rolling over for the first time since last summer

3. AAPL shares saw the largest one day drop since the “flash crash”

I am down to ~ 10% equity allocation, having made large shifts to cash in late January and mid February. My focus at this point is to look for support to develop and put that cash to work. However, the pace of events around the globe makes for a treacherous market environment.

Once again, while the attention is on the the terrible tragedy in Japan, and my heart truly goes out to the lovely Japanese people, the events in the Middle East – and Bahrain in particular – are very worrisome. The only place to be now, in my view, is in the safety of cash. This is no time to be a hero in the markets. Please be careful!


2 thoughts on “Selling Accelerates

  1. Hello Harry,

    Sorry that I haven’t been commenting; I needed to clarify my own stance. I will only give a short cut analysis, rather than the long detailed one that I did for myself.

    Tuesday/Wednesday’s selling effort reacting to the Japan situation intensified this February 22 consolidation. It threw the indicators into a deeper position, thereby creating a lower and longer consolidation.

    I am thinking that the S&P will test the November breakout level of 1227 to find support. Furthermore, I am looking at next Friday, April 1 job report as a possible bullish resumption.

    In conclusion, upon deep reflection, I believe this consolidation is merely business as usual. Yet I didn’t feel that way when I saw the futures falling off the cliff Monday evening on March 14, or Hawaii afternoon time. It looked like panic selling to me.

    Thank you for letting me comment on your blog, as I try to learn how to analyze market direction.


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